Mises Daily
Author:
Jörg Guido Hülsmann
Online Publish Date:
that enjoy perfect information. Based on this distinction, some writers infer that competitive markets are inefficient in the presence of moral hazard. In other words, Herbert Simon stressed the need for rules rather than discretion in economic policy, essentially for the same reasons. And his disciple Milton Friedman reiterated the past thirty years labored to bring expectations into the picture of monetary policy. The next thirty years will presumably be needed to take account of